19150526_Minutes.pdf

426

At a regular meeting of the Federal Reserve

Board held in the office of the Governor at 4.00 p. m.

on Wednesday, May 26,

PRESENT:

Mr. Hamlin, presiding, Mr. Harding

Mr. Williams Mr. Miller

Mr. Warburg Mr. Willis, Secretary.

The reading of the minutes having been dispensed

with, the Secretary of the Board presented a communication

from the office of the Comptroller of the Currency relative

to a reduction in the capital stock of the National Union

Bank of Rockhill, 3. C., from .400,000 to )300,000 and a

memorandum from Federal Reserve Agent Ingle of Richmond

favoring the reduction. On motion it was ordered that the

reduction be approved and the office of the Comptroller in-

formed of the Board's position in the matter.

On motion applications for stock in Federal reserve

banks aggregating 89 shares, duly recommended by Mr. Hardin'

were approved as follows:

DISTRICT No. 4. .shares.

National Bank of John A.First National BankFirst National Bank

DISTRICT No. 5.

First National Bank

Black, Barbourville, Ky. 3

West Union, Ohio. 1

Ludlow, Ky. 1

Selma, N. C. 18

Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DISTRICT No. 6. Shares.

First National Bank Claxton, Ga. 3

First National Bank Evergreen, Ala. 1

DISTRICT No. 7.

German Amorican National Bank Fort 7ayne, Ind.

DISTRICT No. 8.

Farmers National Bank Princeton, Ind. 4

First National Bank Batesville, Ark. 1

State National Bank Frankfort, Ky. 9

DISTRICT ro. 9.

First National Bank' Lakefield, ::inn. 1

First National Bank Aitkin, Linn. 5

Northern National Bank Duluth, Nina. 10

First National Bank Foley, Nina. 1

Union National Bank :inot, N. Dak. 3

DISTRICT No. 10.

Fidelity National Bank Aurora, Nebr. 2

Liberty National Bank Tulsa, Okla. 5

DISTRICT No. 12.

First National Bank Yreka, Cal. 15

On motion applications for the surrender of stock

in Federal reserve banks aggregating 185 shares, duly recom-

mended by nr. Harding, were approved as follows:

DISTRICT No. 4.

First National Bank Jackson, Ky. 5


4°8

DI3TRrT No. 4.(Cont'd.) Shares.

Metropolitan National Bank Pittsburgh, Pa. 180

The Secretary of the Board presented an amend-

ment to the By-laws of the Board necessary as a preliminary

to the establishment of a system for the creation and manage-

ment of a Gold Settlement Fund. The Secretary also presented

a form of agreement signed by all members of the Board waiv-

ing the customary notice necessary for the adoption of an

amendment to the By-laws, the sane being called for as a

matter of emergency. On motion the said agreement was ordered

entered in the minutes as follows:

We, the undersigned members of the Federal Re-

serve Board, in order to adopt at once the proposed

amendment of the By-laws of the Federal Reserve Board

numbered V, relating to the designation of persons to

control and have access to the safe in the Treasuryvault set apart for the use of the Federal Reserve

Board, do hereby waive the right afforded each of us

by Article LK of the By-laws to have a copy of the

said proposed amendment seven days in advance of the

meeting at which it is to be adopted.

W. G. McADOO,Secretary of the Treasury

JOHN SKELTON WILLIAMS,Comptroller of the Currency.

C. S. HAMLIN,Governor.

F. A. DELANO,Vice Governor

PAUL M. WARBURG

W. P. G. HARDING

A. C. =TIM

On motion the amendment to the By-laws already re-

ferred to, was adopted as Amendment V, and ordered entered


429

the minutes as follows:

The Federal Reserve Board shall designateand appoint two persons who shall have controlof the combination of the safe set apart in theTreasury vault for the deposit of funds receivedby the Federal Reserve Board on account of theGold Settlement Fund. So much of the provisionsof the By-laws heretofore adopted inconsistentwith this amendment, is hereby repealed.

The Secretary of the Board presented•resolu-

tions designed to carry into effect the practical opera-

tion of the Gold Settlement Fund as permitted by the

amendment to the By-laws already adopted, and as re-

quired by the plan for the Gold Settlement Fund already

approved. On motion the said resolutions were adopted,

and ordered entered in the minutes as follows:

WHERE13, under the provisions of Regulation L,Series of 1915, adopted by the Federal Reserve Board,it is necessary, in order to transfer title to thegold order certificates deposited in the Gold Settle-ment Fund, that they be endorsed by the Federal Re-serve Board,

NOW, THEREFORE, BE IT RESOLVED, That this en-dorsement by the Federal Reserve Board, to be validand binding, must have the signatures of two membersof said Board, and

BE IT FURTHER MSOLVED,'That the Governor andVice Governor, or in the absence of either br bothof them, Mr. Warburg, Mr. Harding or Mt. Miller, intheir place and stead, be and they are hereby author-ized to endorse such gold order certificates, forand in behalf of the Federal Reserve Board.

WHMEAS, pursuant to Regulation L, Series 1915,adopted by the Board, arrangements have been made

•


430

with the several Federal reserve banks for de-

posit of the Gold Settlement Fund with the Fed-

eral Reserve Board to be used in the adjustment

of balances between the several Federal reserve

banks, and

WHEREAS, Section 4 of said Regulation pro-

vides as follows:

"(a) A safe in the Treasury vault will be set

apart for the exclusive use of the Federal

Reserve Board.

(b) To open the Treasury vault, the presence of

two persons designated by the Secretary ofthe Treasury is required. The combination

of the safe set apart for the use of theBoard shall be controlled by two persons

designated by the Board.

(c) A vault record shall be kept, giving a memo-

randum of all entrances to the safe, by whom

made, for what purpose, and the certificates

deposited or withdrawn. Each entry on the

vault record book shall be signed by the per-

sons having access to the safe," and

WHEREXS, under Section 6 of Regulation L it is

necessary for the Board to designate and appoint a

settling agent,

NOW, THEREFORE, BE IT RESOLVED -(1) That SHERMAN ALLEN and RAY M. GIDNEY

be and they are hereby designated and appointed,.pur-

suant to the provisions of Section 4 above quoted, as

the two persons who shall control and have access to

the safe set apart in the vault of the Treasury for

the use of the Federal Reserve Board, and who shall

be charged with the custody and control and with the

duty of keeping the necessary records of all gold cer-

tificates and other securities or funds, deposited in

and withdrawn from said safe.

(2) That SHERMAN A= be and he hereby is

designated and appointed as the settling Agent provided

for in said regulation.


431

(3) That a copy of this resolution betransmitted to the Secretary of the Treasurywith request that he turn over the control ofthe safe sot apart in the vault of the Treasuryfor the use of the Federal Reserve. Board toSHERMAN ALLEN and RAY M. GIDNEY above named.

1 a. That SHERMAN ALLEN and RAY M. GIDNEYbe and they are hereby designated, appointed andauthorized to have control of and access to thesaid safe and to make the proper vault records inthe absence of either or both

The Assistant Secretary of the Board was designa-

ted as Settling Agent ad interim and Ray E. Gidney as Deputy

Settling Agent.

The Secretary of the Board presented decrees re-

lating to the redistricting appeals in West Virginia, New

Jersey and Oklahoma cases.

On motion the West Virginia decree affecting the

counties of Wetzel and Tyler was approved subject to correc-

tion as to the following points prior to entry: (1) Change

in date to indicate the entry of the decision as the day

Nhon the resolution on the subject was adopted by the Board,

May 4. (2) Intrdduction of words to indicate that the order

need not be effective until July 1, 1915.

. The decree relating to the transfer of the banks

of Oklahoma from the Federal reserve district of Dallas to

that of Kansas City, was, on motion, adopted and ordered


432

entered subject to the sane change as in the case of

the West Virginia decree.

On motion the decree transferring the banks

of northern New Jersey from the Federal reserve dis-

trict of Philadelphia to that of New York, was adopted

subject to the same corrections as in the case of the

other two orders.

A decree denying the petition of the banks

of Nebraska and Wyoming for transfer, similar in form

and substance to the corrected decrees in the cases

aforesaid, was, on motion, adopted and Ordered entered.

As thus corrected and ordered entered the

decrees in the four appealed cases aforesaid were entered

as follows:

At a stated meeting of the FederalReserve Board, duly held at itsoffice in the City of Washington,District of Columbia, May 4,1915.

PRESENT:

Mr. Hamlin, Governor,.Mr. Delano, Vice GovernorMr. MillerUr. HardingMr. WarburgMr. Williams.

In the matter of review- of - •

the decision of the Reserve :


433

Bank Organization Committee :duly rendered and filed inaccordance with the provis- : ORDER VENDING GEOGRAPHICALions of the Federal Reserve :LIMITS OF DISTRICTS NOS. 2Act, on April 2, 1914, dosig- : AND 3.nating twelve Federal reserve :cities and defining the geo-graphical limits of the dis-tricts to be served.

By special order of the Board, the decision ofthe Reserve Bank Organization Committee designating twelveFederal reserve cities and defining the geographical limits.of the districts to be served, having been duly heard andconsidered by the Board -

(1) Upon the petition of 123 member banks in northernNew Jersey to have transferred from District No.3to District No.*2 those counties in which the pe-titioning member banks are located.

(2) Upon the answer of the Federal Reserve Bank ofPhiladelphia to said petition.

(3) Upon the evidence heard by the Reserve Bank Organi-zation Committee, and exhibits and briefs filed withsaid Committee.

(4) Upon the written and printed briefs of Counsel andthe oral arguments heard by the Board.

UPON CONSIDERATION WHEREOF, it appearing to theBoard that the convenience and customary course of business,and the best interests of the Federal Reserve System will beserved by modification of the geographical limits of Districts2 and 3,. the Board doth order

I. That District No. 2 shall be modified and extendedso as to include the State of New York and the fol-lowing counties in the State of Jew Jersey: Mon-mouth, Middlesex, Hunterdon, Somerset, Union, Essex,Passaic, Hudson, Bergen, Morris, Sussex and Warren.

II. That District No. 3 be modified and altered so as toinclude all of the counties in the State of New Jersey


434

except those by this order made a part of

District No. 2, the State of Delaware and

all that part of Pennsylvania located east

of the western boundary of the following

counties: McKean, Elk, Clearfield, Cam-

bria and Bedford.

III. That the alterations in Districts 2 and 3

directed in this order become effective

July 1, 1915.

IV. That the Federal Reserve Banks of New York

and Philadelphia be notified of the changes

made in the districts referred to. and di-

rected to take such action as may be neces-

sary for the transfer of membership of the

banks included in the territory affected.

V. That a copy of this order be filed with the

Comptroller of the Currency in order that the

certificate of the Reserve Bank Organization

Committee may be properly amended.

At a stated meeting of the FederalReserve Board, duly held at its

office in the City of Washington,

District of Columbia, May 4, 1915.

PRESENT:

In the matter of review- of -

the decision of the ReserveBank Organization Committeeduly rendered and filed inaccordance with the provis-

Mr. Hamlin, Governor,

Mr. Delano, Vice Governor

Mr. MillerMr. HardingMr. WarburgMr. Williams


435

•

ions of the Federal Reserve : ORDER A:L.11,11)111G GECA;RAill-Act, on April 2, 1914, desig- ICAL LI:IITS OF DLJTHICT3nating twelve Federal reserve : NOO. 4 A:ND 5.cities and defining the gee-graphical limits of the dis-tricts to be served.

By special order of the Board, the decision ofthe Reserve Bank Organization Committee designating twelveFederal reserve cities and defining the geographical limitsof the districts to be served, having been duly heard andconsidered by the Board -

(1) Upon the petition of member banks located inthe counties of Wetzel and Tyler, West Virginia,to have those counties transferred from DistrictNo. 5 to District No. 4.

Upon the answer of the Federal Reserve Bank ofRichmond to said petition.

Upon the evidence heard by the Reserve Bank Or-ganization Committee, and exhibits and briefsfiled with said Committee.

(4) Upon the written and printed briefs of Counsel

and the oral arguments heard by the Board.

UPON CONSIDERATION WHEREOF, it appearing to theBoard that the convenience and customary course of business,and the best interests of the Federal Reserve System will beserved by modification of the geographical limits of Districts4 and 5, the Board doth order

I. That District No. 4 be modified and e.,:tended so asto include the State of Ohio; all that part of Pen-nsylvania lying west of District No. 3; the countiesof rarshall, Ohio, Brooke, Hancock, Wetzel dnd Tylerin the 'State of West Virginia; and all that part ofKentucky located east of the western boundo7y of the

following countioo; Boone, Grant, 'Scott, Wciodford,


436

Jessamine, Garrard, Lincoln, Pulaski andMcCreary.

II. That District No. 5 be modified and alteredso as to include the District of Columbia,the States of Maryland, Virginia, North Caro-lina, South Carolina, and all of West Virginiaexcept the counties of Marshall, Ohio, Brooke,Hancock, Wetzel and Tyler.

III, That the alterations in Districts 4 and 5 di-rected in this order become effective July 1,1915.

IV. That the Federal Reserve Banks of Cleveland andRichmond be notified of the changes made in thedistricts referred to and directed to take suchaction as may be necessary for the transfer ofmembership of the banks included in the territoryaffected.

V. That a copy of this order be filed with the Comp-troller of the Currency in order that the certif-

icate of the Reserve Bank Organization Committee

may be properly amended.

At a stated meeting of the FederalReserve Board, duly hold at itsoffice in the City of Washington,District of Columbia, May 4, 1915.

PRESENT:

Mr. Hamlin, Governor,Mr. Delano, Vice Governor,Mr. MillerMr. HardingMr. WarburgMr. Williams.

In the matter of review :of

the decision of the Reserve :


43

Bank Organization Committee :duly rendered and filed in :accordance with the provis- aRDEIR AFFIRLIING TH3 LOCATIONions of the Federal Reserve : OF NEBRISEA AND WYOLING INAct, on April 2, 1914, desig- : DISTRICT No. 10.nating twelve Federal reserve :cities and defining the geo- :graphical limits of the dis-tricts to be served.

By special order of the Board, the decision of theReserve Bank Organization Committee designating twelve Fed-eral reserve cities and defining the geographical limits ofthe districts to be served, having been duly heard and con-sidered by the Board -

(1) Upon the petition of certain banks located inNebraska and Wyoming for the transfer of thoseStates from District No. 10 to District No. 7.

(2) Upon the answer of the Federal Reserve Bank ofKansas City to said petition.

(3) Upon the evidence heard by the Reserve BankOrganization Committee, and exhibits and briefsfiled with said Committee.

(4) Upon the written and printed briefs of Counseland the oral arguments hoard by the Board.

UPON CONSID3RATION WHMEOF, it appearing to theBoard that the convenience and customary course of business,and the best interests of the Federal Reserve System will beserved by affirming the decision of the Reserve Bank Organ-ization Committee in placing Nebraska and Wyoming in Dis-trict No. 10, the Board doth order

I. That the petition of member banks located in Nebraskaand Wyoming, for a transfer of those States from Dis-trict No. 10 to District No. 7, be dismissed withoutprejudice to the right of the Board to make such fur-ther readjustments in the lines of the vari6us dis-tricts as it may deem advisable.


438

II. That a copy of this order be filed with the

Comptroller of the Currency.

At a stated meeting of the Federal

Reserve Board, duly held at its

office in the City of Washington,

District of Columbia, May 4, 1915.

PRESENT:

Er. Hamlin, Governor,

Er. Delano, Vice Governor,

Er. Miller,Mr. Harding,Er. Warburg,Mr. Williams.

In the matter of review- of -

the decision of the Reserve

Bank Organization Committee

duly rendered and filed in : ORDER AMENDING GEOGRAPHICAL

accordance with the provis- LIMITS OF DISTRICTS NOS. 10

ions of the Federal Reserve : AND 11.

Act, on April 2, 1914, desig-

nating twelve Federal reserve

cities and defining the geo-

graphical limits of the dis-

tricts to be served.

By special order of the Board, the decision of tie

Reserve Bank Organization Committee designating twelve Fed.'

eral reserve cities and defining the geographical limits of

the districts to be served, having been duly heard and con.'

sidered by the Board -

(1) Upon the petition of certain banks in Oklahoma

for transfer of all counties in Oklahoma. except

the counties of Marshall, Bryan, Choctaw, Push-


439

mataha and McCurtain from District No. 11to District No. 10.

(2) Upon the answer of the Federal Reserve Bankof Dallas to said petition.

4(3) Upon the evidence heard by the Reserve Bank

Organization 'Committee, .and exhibits and. briefs filed with said Committee.

(4) Upon the written and printed briefs of Counsaland the oral arguments heard by the Board.

UPON CONSIDRATION .711MRE0F, it appearing to theBoard that the convenience and customary course of business,and the best interests of the Federal Reserve System will beserved by modification of the geographical limits of Dis-tricts 10 and 11, the Board doth order

I. That District No. 10 be modified and extended soas to include the States of Kansas, Nebraska, Colo-rado and ',7yoming; all that part of Missouri not in-cluded in District No. 8; all of the counties inOklahoma except Marshall, Bryan, Choctaw, Pushma-taha and McCurtain; all that part of New neXi30north of a line forming the southern boundary ofthe counties of McKinley, Sandoval, Santa Fe, SanMiguel and Union.

II. That District No. 11 be modified and altered so asto include the State of Texas, all that part of NewMexico not included in District Mo. 10; the follow-ing counties in Oklahoma: Marshall, Bryan, Choctaw,Pushmataha, and McCrutain; all that part of Louisiananot included in District No. 6, and the following.counties in the State of Arizona: Pima, Graham, Green-lee, Oochise and Santa Cruz.

III. That the alterations in Districts 10 and 11 directedin this order become effective July 1, 1915.

VI, That the Federal Reserve Banks of Kansas City and Dal-las be notified of the changes made in the districtsreferred to and directed to take such action as may benecessary for the transfer of membership of the banksincluded in the territory affected.


440

IV. That the Federal Reserve Banks of Kansas Cit

and Dallas be notified of the changes made in

the districts referred to and directed to take

such action as may be necessary for the trans-

fer of membership of the banks included in the

territory affected.

V. That a copy of this order be filed with the

Comptroller of the Currency in order that the

certificate of the Reserve Bank Organization

Committee may be properly amended.

Request for detailed statistics relating to the

amount of bonds held by Federal Reserve banks, and of the

distribution of their agricultural-loans by maturities were

ordered declined.

On motion the Board expressed its opinion in re-

sponse to an inquiry from Assistant Treasurer Vogel of New

York City, that Mr. Charles Starek as Deputy Federal Reserve

Agent of the Federal Reserve Bank of Now York would have the

power to endorse gold certificates standing in the name of

Mr. Pierre Jay, Federal Reserve Agent, in the absences of

the latter.

The Secretary of the Board presented a request

on the part of certain Federal reserve agents now in the

city, for a joint meeting with the Board on Thursday after-

noon. On motion the request was acceded to, and the meet-

_ing in question set for 3.00 p. m., the Secretary of the

Board to give duo notice of the same.


On motion at 4.40 p. m., the Board adjourned

to meet at 3.00 p* m. on Thursday,Lay 27.

11114i) 74/(111.1414-1

APPROVED:

Secretary.

Chairman.

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